Operational Risk Management

For the financial services industry, risk has always been an inherent part of doing business. But in recent years, corporate wrongdoing, market uncertainty and turbulent capital markets have put the dangers of risk – and the consequences of poorly managing it – in the spotlight.

SAS understands that financial institutions must measure and manage operational risk in a scientific way – not just for regulatory purposes, but also for making sound business decisions – and that an organization's approach to operational risk must also be integrated to support the need for a complete view of the risks faced.

How SAS Can Help

SAS^® OpRisk Management is an end-to-end solution built on the industry-leading SAS Business Analytics Framework. The solution includes:

• A Web-based application for collecting, managing, tracking and reporting risk information. This component includes modules for:
  • Assessment of risk, controls and causes.
  • Control testing.
  • Loss data.
  • Key risk indicators (KRI).
  • Risk scenarios.
  • Issues and action plans.
• An advanced modeling engine that facilitates the integration of internal operational risk data (e.g., loss data, assessment scores, scenarios, KRIs) with external operational risk data (e.g., public loss databases, consortium databases) within the VaR modeling. The modeling engine:
  • Provides unprecedented choice in statistical techniques so you can exploit advanced maximum likelihood estimation distribution-fitting techniques designed to work with a number of parametric families.
  • Provdes full visibility into the modeling logic so you can view and understand behind-the-scenes calculations and how knowledge about risk has been defined, measured, derived, distilled and displayed.
• The world's largest and most comprehensive database on publicly reported operational losses. The database contains 20,678 events across all industries worldwide, and provides up to 50 highly relevant fields of descriptive information for each loss event. This is the broadest possible statistical sample from which to model risk factors, probabilities and costs.

How SAS Is Different

Only SAS provides an architecture that supports the data and methodology requirements, usability criteria and ability to distribute key risk information effectively across the enterprise for a variety of different users. With SAS, you get:

• An integrated infrastructure. SAS provides an end-to-end solution with an integrated data model, data management capabilities, advanced analytics and reporting.
• Methodology capabilities. The solution includes numerous integrated risk application components that can be used together, individually or as a combination of risk applications. 
• Extendibility. The solution is user-configurable to meet the needs of an organization's specific requirements on data, models, analytics and reporting.
• User friendliness. A Web-based risk analyst and reporting user interface allows risk capabilities and reporting to be distributed efficiently across the enterprise.